Macroeconomic Dilemmas of Managing Resource Allocation in the Polish Public System in the Context of Armaments Expenditure
Purpose: The aim of the study is to conduct structural assessments and evaluations of the effects resulting from the use of military and military security measures and their impact on the electronic system in the Polish public system after 2022. Design/Methodology Approach: The author analyzes military spending in Poland, broken down by equipment, infrastructure, and personnel, between 2014 and 2025. National defense spending has increased significantly after 2022. He compares this spending with the budget deficit and analyzes the key risks of this process. This creates serious fiscal tensions and a lack of integration between the defense sector, education (R&D), and healthcare. Attention is also drawn to the overlooked social component—the need to build morale and social resilience as a pillar of deterrence. Practical Implications: The article points out that the rapid modernization of the Polish army was reactive in nature, a response to the war in Ukraine and pressure from the US, rather than the result of a long-term strategy. Massive expenditures on national defense do not translate into high rationality of these expenditures. Defense can only fully develop if it benefits from a stable source of investment over many years and decades. Initiating a proper defense industrial cycle in Central and Eastern European countries requires long-term planning and investment. The article concludes with recommendations for implementing a comprehensive security strategy, stabilizing public finances, and strengthening the link between army modernization and the Polish economy. Originality value: The situation regarding defense spending differs from the patterns typical of the United States, the United Kingdom, or Germany. Analytical studies have confirmed that individual countries will find it increasingly difficult to develop their own, independent defense systems. The costs are high for Europeans, as individual national development programs face strong international competition and cannot fully exploit economies of scale. The level of national defense spending must be assessed in the context of the constraints imposed by EU fiscal rules and the overarching national goal of stable, balanced, and sustainable economic growth.